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2:31
EBITDA vs Profit: What Investors Need to Know #stockmarket #stockselection
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What is EBITDA? How to understand it and use it. #ebitda #businesstok #financialeducation #investing101 #businessowner Earnings before interest, taxes, depreciation and amortization @Paul Hurard
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IB Interview Challenge: Advanced Edition 👉 A company has negative EBITDA, but it was just acquired at a premium valuation. How is that possible? Take a second. Don’t just throw out ‘synergies’—think deeper. Drop your answer ⬇️ and tag someone who’s gunning for a return offer. Yes, it happens. And it’s not as crazy as it sounds. Here’s why: 1.\tStrategic Value > Financials: 2.\tThe acquirer might see long-term value in the brand, user base, IP, or tech platform—especially in early-stage or turna
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survivefinance
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#finance #investmentbanking EBITDA → Free Cash Flow 👇 EBITDA – D&A = EBIT EBIT × (1 – tax rate) = NOPAT (Net Operating Profit After Tax) NOPAT \t•\tD&A (non-cash) – CapEx – Change in Net Working Capital = Free Cash Flow • NOPAT shows after-tax operating performance • FCF tells you what cash is left for debt equity holders
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Revenue vs. Profit: Understanding the difference is key to scaling your business. Revenue is the total income from your sales, while profit is what remains after covering all costs. Focus on revenue to capture market share with disruptive ideas, but let profit be the indicator of how well your business is doing.
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Calculate EBITDA, which stands for Earnings before Interest, Taxes, Depreciation and Amortization. It is a popular metric to estimate normalized cash flows on a Profit and Loss #ebitda #financialstatements #profitandloss #accounting #finance #cfo
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